A recent report issued by property information and analytics firm CoreLogic said the peak of the residential foreclosure crisis hit South Carolina much later than most areas of the country.
The report, “United States Residential Foreclosure Crisis: 10 Years Later” examines the timeline of the crisis which began in 2007 and peaked in September 2010 when nearly 120,000 completed foreclosures occurred during that month.
According to the data, the peak time of the crisis in South Carolina was February 2012 when there were 24,716 completed foreclosures during the month and unemployment was at 10%. From 2007 to 2016, CoreLogic reported 110,328 completed foreclosures across the state.
The Greenville-Anderson-Mauldin and Columbia metropolitan statistical areas had their peaks during the same time as the state. In February 2012, Greenville-Mauldin-Anderson had a foreclosure rate of 3.3% and an unemployment rate of 8.8%. Columbia’s foreclosure rate was 3.6% during that month and unemployment was 8.7%. The rate is based on the number of homes in some stage of the foreclosure process compared to all homes with a mortgage.
Spartanburg, Myrtle Beach-Conway-North Myrtle Beach, Hilton Head Island-Bluffton-Beaufort and Charleston-North Charleston experienced their residential foreclosure peak in October 2011. In that month, Spartanburg had a foreclosure rate of 4.2% and unemployment was around 11.1%. The foreclosure rate in the Charleston-North Charleston MSA was 4.1% and unemployment was 8.7%, according to CoreLogic’s data.
During that month, Hilton Head Island-Bluffton-Beaufort recorded the highest foreclosure rate of any MSA in the state during the crisis at 5.1% while Myrtle Beach-Conway-North Myrtle Beach had a rate of 4.7%. Unemployment during October 2011 was 8.6% in the Hilton Head Island MSA and 11.5% in the Myrtle Beach MSA.
Nationally, Miami-Miami Beach-Kendall, Fla. had one of the highest foreclosure rates during the crisis when it registered 19.2% in February 2011, according to the CoreLogic report.
According to CoreLogic, the foreclosure crisis began in some parts of the country as early as 2007 and later peaked nationwide in September 2010, with approximately 120,000 completed foreclosures occurring during that single month. Since the first quarter of 2007, CoreLogic reported nearly 7.8 million completed foreclosures nationally.
By the end of 2016, CoreLogic reported the national foreclosure inventory rate was 0.9% compared to 3.3% in September 2010.
“The country experienced a wild ride in the mortgage market between 2008 and 2012, with the foreclosure peak occurring in 2010,” said Frank Nothaft, chief economist for CoreLogic, in a news release announcing the latest report. “As we look back over 10 years of the foreclosure crisis, we cannot ignore the connection between jobs and homeownership. A healthy economy is driven by jobs coupled with consumer confidence that usually leads to homeownership”
The mortgage delinquency rate has also declined nationally. According to CoreLogic, at the end of 2016, 1 million mortgages, or 2.6% of homes with a mortgage, were in serious delinquency compared to the serious delinquency peak of 3.7 million mortgages, or 8.6% of homes with a mortgage, in January 2010. In recent years, the decline in serious delinquencies has been geographically broad throughout the country with year-over-year decreases from December 2015 to December 2016 in 48 states and the District of Columbia.